Jerome H. Powellarya88 slot, the chair of the Federal Reserve, said that a solid economy with low unemployment, robust consumer spending and strengthening business investment gave the central bank room to take its time in cutting interest rates.
“The economy is not sending any signals that we need to be in a hurry to lower rates,” Mr. Powell said during a speech in Dallas on Thursday. “The strength we are currently seeing in the economy gives us the ability to approach our decisions carefully.”
The Fed is trying to navigate a complicated moment. The economy remains healthy overall, but the job market has slowed over the past year. Inflation has also been cooling steadily. Between the two developments, central bankers have decided that they no longer need to tap the brakes on the economy quite so hard.
After lifting interest rates sharply in 2022 and 2023 in a bid to cool the economy and wrestle rapid inflation back under control, they have begun to lower borrowing costs in recent months.
But officials still want to make sure that they fully stamp out rapid inflation. Price increases have cooled substantially from their 2022 peak, but they have not completely returned to the central bank’s 2 percent goal. Prices climbed 2.1 percent in the year through September, and are on track to come in a bit above that in October, based on other recent data reports.
Mr. Powell made it clear that Fed officials expected to see limited progress on inflation in the next few months.
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